President Trump intensified his criticism of Federal Reserve Chairman Jerome Powell, calling for his immediate dismissal. Trump accuses Powell of not doing enough to bolster the economy and of "playing politics." This follows Powell's warning that Trump's tariffs could negatively impact inflation and the job market.
Powell maintains that the Federal Reserve needs to be cautious about interest rate cuts, considering the potential long-term effects of Trump's policies on inflation. The Fed last lowered rates in December and has held them steady since. Market expectations indicate that rates will remain unchanged in the upcoming May meeting.
Trump has repeatedly pressured Powell to lower interest rates. His comments underscore the ongoing tension between the executive branch and the independent Federal Reserve.